Do subsidiaries of public companies have to file according to GAAP?

Companies that file with the SEC obviously follow GAAP and therefore they account with regards to the accrual method.  I'm currently dealing with a company who is a subsidiary of a publicly traded company and they are telling me they need a payment before EOY since they are on a cash accounting method.  If the parent company has AR/AP in their statements then why would a subsidiary account via cash method?

Also, maybe a Q for all of you FIG coverage area people, wouldn't it be beneficial for banks to file under the cash method?  Then they would be able to defer the fee income to the tail end of the loan, right?  

I know these two questions seem unrelated but the company I am dealing with ties these both together. Trying to get an understanding of if the company actually accounts via cash and, if I can't figure that out, maybe I can get some arguments for and against a cash method of accounting for them to determine whether their assertion is valid.

1 Comments
 

At et adipisci eaque aliquid quidem. Ea distinctio rerum dolorem magnam est. Harum cum fuga sed ipsam quia et. Consequatur repudiandae non et sint culpa dolor.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (79) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”